Men's Wearhouse Reports Fiscal 2012 Third Quarter Results

          Men's Wearhouse Reports Fiscal 2012 Third Quarter Results

- Q3 2012 GAAP diluted earnings per share grew 20% to $0.95 versus last year's
comparable adjusted third quarter earnings per share

- Company updates guidance for fiscal fourth quarter and fiscal full year 2012

PR Newswire

HOUSTON, Dec. 5, 2012

HOUSTON, Dec. 5, 2012 /PRNewswire/ --The Men's Wearhouse (NYSE: MW) today
announced its consolidated financial results for the fiscal third quarter
ended October 27, 2012 and will file its Form 10-Q tomorrow morning, December
6, 2012.

Comparable diluted earnings per share rose 20% over last year's third quarter
and were within the $0.95 to $0.98 guidance range given on September 5, 2012.


Net earnings for the 2012 fiscal third quarter was $48.8 million, or $0.95
diluted earnings per share, compared to net earnings of $39.9 million, or
$0.77 diluted earnings per share, in the same period in 2011. Last year's
third quarter adjusted diluted earnings per share was $0.79 after excluding
$1.0 million ($0.7 million after tax or $0.01 per diluted share) in
acquisition related integration costs and $0.7 million ($0.5 million after tax
or $0.01 per diluted share) for a non-cash asset impairment charge.

Total net sales for the fiscal 2012 third quarter increased 7.9% to $631.0
million from $584.6 million for the same period a year ago. Retail segment
sales increased by 7.7% or $40.2 million and corporate apparel sales increased
by 10.1% or $6.1 million.

Doug Ewert, Men's Wearhouse president and chief executive officer, stated,
"Sales at our flagship brand Men's Wearhouse stores, which represented 65% of
our total third quarter sales, were above both prior year sales and our plan
for the quarter. Comparable store sales increased 9.5% as our customers
responded well to our promotions and value proposition in the third quarter.
In addition, our higher margin tuxedo rental revenues had a U.S. comparable
store sales increase of 10.9% in the third quarter, driven by increased unit
rental rates and unit rentals as well as the absence of the rentals shift last
year to the fourth quarter for the 11-11-11 event date.

"Moores, our retail brand in Canada, was 11% of our total sales mix in the
2012 third quarter and delivered a comparable store sales increase of 3.0%,"
continued Ewert. "K&G, with 12% of our total third quarter sales, had a
comparable store sales decrease of 4.2%. Sales at K&G were disappointing as
customers did not respond to our promotions and new marketing campaign as well
as expected. Our Corporate Apparel segment, which represented 11% of our
total 2012 third quarter sales, had a sales increase of 10.1% as planned
launch dates for customer uniform programs occurred."

The following is a summary of net sales for third quarter and year to date
fiscal 2012. The dollars shown are U.S. dollars in millions and due to
rounded numbers may not sum. Comparable store sales do not include ecommerce
sales and the Moores' comparable store sales change is based on the Canadian
dollar.

Third Quarter Net Sales Summary – Fiscal 2012
                                          Net Sales    Comparable Store Sales
                                                       Change
                         Net Sales Change Current Year Current Year Prior Year
Total Retail Segment     7.7%     $40.2   $564.0
 Men's Wearhouse   10.6%    $38.9   $407.4       9.5%         5.5%
 K&G               (3.5%)   ($2.8)  $77.3        (4.2%)       1.6%
 Moores            4.8%     $3.3    $72.3        3.0%         8.6%
 MW Cleaners       14.4%    $0.9    $7.0
Corporate Apparel        10.1%    $6.1    $66.9
Segment
Total Company            7.9%     $46.4   $631.0

Year-To-Date Net Sales Summary – Fiscal 2012
                                          Net Sales    Comparable Store Sales
                                                       Change
                         Net Sales Change Current Year Current Year Prior Year
Total Retail Segment     4.6%    $74.9    $1,705.4
 Men's Wearhouse   6.9 %   $78.2    $1,208.4     5.9%         9.0%
 K&G               (3.2%)  ($9.0)   $270.4       (3.8%)       5.7%
 Moores            1.8%    $3.7     $206.2       3.9%         6.2%
 MW Cleaners       11.4%   $2.1     $20.5
Corporate Apparel        (8.2%)  ($15.5)  $174.4
Segment
Total Company            3.3%    $59.3    $1,879.9

2012 FINANCIAL GUIDANCE

For the fiscal year, the Company expects GAAP diluted earnings per share in a
range of $2.57 to $2.63, an increase of 8.0% to 10.5% over the prior year
adjusted diluted earnings per share of $2.38. Fiscal 2012 is a 53-week year
with an extra week included in the fourth quarter. Diluted earnings per share
from the extra week are estimated at $0.03.

For the fourth quarter, GAAP diluted earnings per share is expected to be in a
range of $0.01 to a loss of $0.05 per share, as compared to the prior year
adjusted loss per share of $0.05.

"Our current guidance reflects a lowered earnings expectation from our
previous fourth quarter guidance, which was for diluted EPS in a range of
$0.12 to $0.15," commented Ewert. "The guidance for the 2012 fiscal year is
also lower than our previous estimate of $2.74 to $2.80. The revised guidance
results from our lower than expected retail clothing sales in November and a
more cautious outlook for the remainder of this fiscal year.

"We experienced negative November comparable store clothing sales in both the
US and Canada as a result of lower traffic levels at our retail stores. We
believe the storms in the northeast US at the start of the month, as well as
consumer distractions caused by the presidential election, the "fiscal cliff"
and other economic concerns, contributed to our reduced traffic levels. We
further believe that a more cautious outlook for traffic trends and clothing
sales through the fourth quarter is now warranted and have revised our
guidance accordingly."

The following is a summary of guidance information. All comparable store
sales growth is based on a 52-week comparable time period. Comparisons to
prior year are to adjusted numbers which exclude acquisition related
integration costs and a non-cash asset impairment charge.

                                            Guidance          Guidance
                                            4Q FY 2012       FY 2012
GAAP Diluted EPS
                                            $(0.05) to $0.01 $2.57 to $2.63
Sales
Total Sales Increase                        +9.5% to +10.5%  +4.7% to +5.0%
Comparable Store Sales Growth
 MW: 63% of FY12 Total Sales            +1% to +3%       +4% to +5%
-- MW Tuxedo Rental Revenues                +6% to +7%       +6% to +7%
 K&G: 15% of FY12 Total Sales           -3% to -4%       -3% to -4%
 Moores: 11% of FY12 Total Sales        +1% to +2%       +2% to +3%
Corporate Apparel: 10% of FY12 Total Sales  +17% to +18%     -2% to -3%
Gross Margin
                                            +8.7% to +11.2%  +5.8% to +6.3%
Total Gross Margin Increase
Change in Gross Margin as Percent of Sales  -0.30% to +0.25% +0.45% to +0.55%
SG&A
Increase in SG&A                            +7.9% to +8.3%   +5.9% to +6.1%
Other
Effective Tax Rate                          52.0%            33.5%
Weighted Average Shares (millions)          51.007           51.023
Average Foreign Exchange Conversion Rates
-- US Dollar to the Pound                   1.608            1.590
-- US Dollar to the Canadian Dollar         1.000            1.001
Dilutive Effect of Participating Securities $0.00            $0.03

CONFERENCE CALL AND WEBCAST INFORMATION

At 9:00am Eastern time on Thursday, December 6, 2012, Company management will
host a conference call and real time webcast to review fiscal third quarter
2012 results and its outlook for the fourth quarter and full year 2012.

To access the conference call, dial 480-629-9692. To access the live webcast
presentation, visit the Investor Relations section of the Company's website at
www.menswearhouse.com. A telephonic replay will be available through December
13, 2012 by calling 303-590-3030 and entering the access code of 4574470#, or
a webcast archive will be available free on the website for approximately 90
days.

STORE INFORMATION

                         October 27, 2012  October 28, 2011  January 28, 2012
                         Number of Sq. Ft. Number of Sq. Ft. Number of Sq. Ft.
                         Stores            Stores            Stores
                                   (000's)           (000's)           (000's)
Men's Wearhouse          625       3,570.7 597       3,399.6 607       3,462.7
Men's Wearhouse and Tux  303       417.5   361       503.7   343       474.6
Moores, Clothing for Men 118       747.8   117       741.9   117       741.7
K&G ^(a)                 98        2,326.6 100       2,375.4 99        2,351.2
Total                    1,144     7,062.6 1,175     7,020.6 1,166     7,030.2

^(a) 92, 92 and 91 stores, respectively, offering women's apparel.

Founded in 1973, Men's Wearhouse is one of North America's largest specialty
retailers of men's apparel with 1,144 stores. The Men's Wearhouse, Moores and
K&G stores carry a full selection of men's designer, brand name and private
label suits, sport coats, furnishings and accessories and Men's Wearhouse and
Tux stores carry a limited selection. Most K&G stores carry a full selection
of women's apparel. Tuxedo rentals are available in the Men's Wearhouse,
Moores and Men's Wearhouse and Tux stores. Additionally, Men's Wearhouse
operates a global corporate apparel and workwear group consisting of Twin Hill
in the United States and Dimensions, Alexandra and Yaffy in the UK.

This press release contains forward-looking information. The forward-looking
statements are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
may be significantly impacted by various factors, including sensitivity to
economic conditions and consumer confidence, possibility of limited ability to
expand Men's Wearhouse stores, possibility that certain of our expansion
strategies may present greater risks, changes in foreign currency rates and
other factors described in the Company's annual report on Form 10-K for the
fiscal year ended January 28, 2012 and subsequent Forms 10-Q.

For additional information on Men's Wearhouse, please visit the Company's
websites at www.menswearhouse.com, www.kgstores.com, www.mooresclothing.com,
www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.

Contact:

Ken Dennard, DRG&L
(832) 594-4004

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE THREE MONTHS ENDED
October 27, 2012 AND October 29, 2011
(In thousands, except per share data)
                    Three Months Ended                   Variance
                             % of              % of                       Basis
                    2012     Sales    2011     Sales     Dollar  %        Points
Net sales:
 Retail    $        63.66%   $        64.54%    $       6.46%    (0.88)
clothing product    401,692           377,307            24,385
 Tuxedo    124,648  19.75%   112,005  19.16%    12,643  11.29%   0.60
rental services

Alteration and      37,701   5.98%    34,480   5.90%     3,221   9.34%    0.08
other services
      564,041  89.39%   523,792  89.60%    40,249  7.68%    (0.21)
Total retail sales

Corporate apparel   66,933   10.61%   60,810   10.40%    6,123   10.07%   0.21
clothing product
sales
 630,974  100.00%  584,602  100.00%   46,372  7.93%    0.00
Total net sales
  340,277  53.93%   316,433  54.13%    23,844  7.54%    (0.20)
Total cost of sales
Gross margin (a):
 Retail      225,191  56.06%   215,638  57.15%    9,553   4.43%    (1.09)
clothing product
 Tuxedo      108,151  86.77%   96,244   85.93%    11,907  12.37%   0.84
rental services
 Alteration  9,698    25.72%   7,811    22.65%    1,887   24.16%   3.07
and other services
 Occupancy   (71,198) (12.62%) (69,425) (13.25%)  (1,773) (2.55%)  0.63
costs

Total retail gross  271,842  48.20%   250,268  47.78%    21,574  8.62%    0.42
margin

Corporate apparel   18,855   28.17%   17,901   29.44%    954     5.33%    (1.27)
clothing product
margin
  290,697  46.07%   268,169  45.87%    22,528  8.40%    0.20
Total gross margin
Selling, general
and administrative  218,188  34.58%   208,147  35.60%    10,041  4.82%    (1.03)
expenses
Operating income    72,509   11.49%   60,022   10.27%    12,487  20.80%   1.22
Net interest        (136)    (0.02%)  (284)    (0.05%)   148     (52.11%) 0.03
Earnings before     72,373   11.47%   59,738   10.22%    12,635  21.15%   1.25
income taxes
Provision for       23,304   3.69%    19,836   3.39%     3,468   17.48%   0.30
income taxes
Net earnings
including           49,069   7.78%    39,902   6.83%     9,167   22.97%   0.95
noncontrolling
interest
Net earnings
attributable to     (226)    (0.04%)  (25)     0.00%     (201)   804.00%  (0.03)
noncontrolling
interest
Net earnings
attributable to     $ 48,843 7.74%    $ 39,877 6.82%     $ 8,966 22.48%   0.92
common shareholders
Net earnings per
diluted common      $               $  
share attributable  0.95              0.77
to common
shareholders
Weighted average
diluted common      50,919            51,339
shares outstanding:
(a) Gross margin percent of sales is
calculated as a percentage of related
sales.

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE NINE MONTHS ENDED
October 27, 2012 AND October 29, 2011
(In thousands, except per share data)
                      Nine Months Ended                        Variance
                                 % of                % of                       Basis
                      2012       Sales    2011       Sales     Dollar   %       Points
Net sales:
 Retail      $1,235,185 65.71%   $1,189,357 65.33%    $45,828  3.85%   0.38
clothing product
 Tuxedo      357,261    19.00%   333,413    18.31%    23,848   7.15%   0.69
rental services
 Alteration  112,975    6.01%    107,767    5.92%     5,208    4.83%   0.09
and other services
 Total  1,705,421  90.72%   1,630,537  89.56%    74,884   4.59%   1.16
retail sales

Corporate apparel     174,429    9.28%    189,978    10.44%    (15,549) (8.18%) (1.16)
clothing product
sales
   1,879,850  100.00%  1,820,515  100.00%   59,335   3.26%   0.00
Total net sales

Total 1,014,847  53.99%   996,468    54.74%    18,379   1.84%   (0.75)
cost of sales
Gross margin (a):
 Retail        686,040    55.54%   661,419    55.61%    24,621   3.72%   (0.07)
clothing product
 Tuxedo rental 308,516    86.36%   287,683    86.28%    20,833   7.24%   0.07
services
 Alteration    29,269     25.91%   27,415     25.44%    1,854    6.76%   0.47
and other services
 Occupancy     (209,263)  (12.27%) (205,006)  (12.57%)  (4,257)  (2.08%) 0.30
costs
 Total  814,562    47.76%   771,511    47.32%    43,051   5.58%   0.45
retail gross margin

Corporate apparel     50,441     28.92%   52,536     27.65%    (2,095)  (3.99%) 1.26
clothing product
margin
    865,003    46.01%   824,047    45.26%    40,956   4.97%   0.75
Total gross margin
Selling, general and
administrative        659,957    35.11%   631,370    34.68%    28,587   4.53%   0.43
expenses
Operating income      205,046    10.91%   192,677    10.58%    12,369   6.42%   0.32
Net interest          (806)      (0.04%)  (781)      (0.04%)   (25)     3.20%   0.00
Earnings before       204,240    10.86%   191,896    10.54%    12,344   6.43%   0.32
income taxes
Provision for income  69,021     3.67%    67,532     3.71%     1,489    2.20%   (0.04)
taxes
Net earnings
including             135,219    7.19%    124,364    6.83%     10,855   8.73%   0.36
noncontrolling
interest
Net (earnings) loss
attributable to       (99)       (0.01%)  16         0.00%     (115)    718.75% (0.01)
noncontrolling
interest
Net earnings
attributable to       $ 135,120  7.19%    $ 124,380  6.83%     $10,740  8.63%   0.36
common shareholders
Net earnings per
diluted common share  $                 $   
attributable to       2.62               2.37
common shareholders
Weighted average
diluted common shares 51,029              51,776
outstanding:
(a) Gross margin percent of sales is calculated as a percentage of related sales.

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                       October 27,         October 29,
                                       2012                2011
ASSETS
Current assets:
 Cash and cash equivalents             $     138,016  $      138,545
 Accounts receivable, net              82,966              66,094
 Inventories                           623,860             616,758
 Other current assets                  68,519              61,088
  Total current assets               913,361             882,485
Property and equipment, net            379,969             348,785
Tuxedo rental product, net             118,202             85,876
Goodwill                               88,473              88,707
Intangible assets, net                 31,992              35,378
Other assets                           4,431               3,579
  Total assets                       $    1,536,428   $    1,444,810
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                      $     170,549   $     155,610
 Accrued expenses and other current    149,244             146,391
 liabilities
 Income taxes payable                  4,939               22,727
  Total current liabilities          324,732             324,728
Deferred taxes and other liabilities   92,057              76,429
  Total liabilities                  416,789             401,157
Equity:
 Preferred stock                       -                   -
 Common stock                          725                 717
 Capital in excess of par              380,099             356,414
 Retained earnings                     1,202,922           1,108,662
 Accumulated other comprehensive       40,735              41,504
 income
 Treasury stock, at cost               (517,894)           (476,749)
 Total equity attributable to common   1,106,587           1,030,548
 shareholders
 Noncontrolling interest               13,052              13,105
  Total equity                       1,119,639           1,043,653
  Total liabilities and equity      $   1,536,428     $   1,444,810

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE NINE MONTHS ENDED
October 27, 2012 AND October 29, 2011
(In thousands)
                                          Nine Months Ended
                                          2012               2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net earnings including noncontrolling    $     135,219  $     124,364
 interest
 Non-cash adjustments to net earnings:
  Depreciation and amortization         61,798             56,572
  Tuxedo rental product amortization    25,330             25,923
  Other                                 18,339             26,164
 Changes in operating assets and          (74,177)           (85,477)
 liabilities
  Net cash provided by operating   166,509            147,546
 activities
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                     (90,085)           (66,960)
 Proceeds from sales of property and      25                 59
 equipment
  Net cash used in investing       (90,060)           (66,901)
 activities
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of common stock   6,918              5,995
 Cash dividends paid                      (27,832)           (18,880)
 Tax payments related to vested deferred  (4,421)            (2,955)
 stock units
 Excess tax benefits from share-based     2,737              1,592
 plans
 Repurchases of common stock              (41,296)           (63,988)
  Net cash used in financing       (63,894)           (78,236)
 activities
 Effect of exchange rate changes          155                (235)
INCREASE IN CASH AND CASH EQUIVALENTS     12,710             2,174
 Balance at beginning of period           125,306            136,371
 Balance at end of period                 $     138,016  $     138,545

SOURCE Men's Wearhouse, Inc.

Website: http://www.menswearhouse.com
 
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